July 27, 2001 – San Antonio, Texas – South Texas Drilling & Exploration, Inc. (AMEX: PDC) today announced plans to release results for its fiscal first quarter ended June 30, 2001 on Wednesday, August 8, 2001 at 6:00 a.m. eastern time.

South Texas Drilling has scheduled a conference call for Wednesday, August 8, 2001 at 11:00 a.m. eastern time / 10:00 a.m. central time. Participating in the call will be Michael E. Little, Chairman and Chief Executive Officer, and Wm. Stacy Locke, President and Chief Financial Officer.

To participate in the call, dial 719-457-2668 at least ten minutes before the conference call begins and ask for the South Texas Drilling conference call. A replay of the call will be available approximately two hours after the call ends and will be accessible until August 15, 2001. To access the replay, dial 719-457-0820 and enter the pass code 710225.

Investors, analysts and the general public will also have the opportunity to listen to the conference call free over the Internet by visiting http://www.easterlyir.com. To listen to the live call on the web, please visit the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call ends.

For more information, please contact Lisa Elliott at Easterly Investor Relations at (713) 529-6600 or email lisae@easterly.com.

South Texas Drilling & Exploration, Inc. provides contract land drilling services under the name Pioneer Drilling Co., Ltd. to independent and major oil and gas operators drilling wells in central, south and east Texas. The Company’s fleet consists of 18 land drilling rigs that can reach depths of 8,000-18,000 feet. South Texas Drilling also has a second 1700-HP technologically advanced land rig under construction and one newly acquired National 110UE 1500-HP rig being refurbished.